Fidelity Select Portfolios Health Care Sector

[Pages:80]Fidelity? Select Portfolios? Health Care Sector

Biotechnology Portfolio Health Care Portfolio Health Care Services Portfolio Medical Technology and Devices Portfolio Pharmaceuticals Portfolio

Annual Report

February 28, 2021

Contents

Note to Shareholders Biotechnology Portfolio

Health Care Portfolio

Health Care Services Portfolio

Medical Technology and Devices Portfolio

Pharmaceuticals Portfolio

Notes to Financial Statements Report of Independent Registered Public Accounting Firm Trustees and Officers Shareholder Expense Example Distributions Board Approval of Investment Advisory Contracts Liquidity Risk Management Program Proxy Voting Results

4 5 Performance 6 Management's Discussion of Fund

Performance 7 Investment Summary 8 Schedule of Investments 14 Financial Statements 18 Performance 19 Management's Discussion of Fund

Performance 20 Investment Summary 21 Schedule of Investments 24 Financial Statements 28 Performance 29 Management's Discussion of Fund

Performance 30 Investment Summary 31 Schedule of Investments 33 Financial Statements 37 Performance 38 Management's Discussion of Fund

Performance 39 Investment Summary 40 Schedule of Investments 44 Financial Statements 48 Performance 49 Management's Discussion of Fund

Performance 50 Investment Summary 51 Schedule of Investments 53 Financial Statements 57 64

65 71 72 74

75 76

Annual Report

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit or visit the Securities and Exchange Commission's (SEC) web site at . You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines. Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation. Other third-party marks appearing herein are the property of their respective owners. All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. ? 2021 FMR LLC. All rights reserved.

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Funds. This report is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by an effective prospectus. A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC's web site at . A fund's Forms N-PORT may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at , . com, or , as applicable. NOT FDIC INSURED ?MAY LOSE VALUE ?NO BANK GUARANTEE Neither the Funds nor Fidelity Distributors Corporation is a bank.

Annual Report

Note to Shareholders:

Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, 2020 the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.

In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and ? given the wide variability in outcomes regarding the outbreak ? significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.

The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are "exogenous shocks" that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.

Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we're taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.

Annual Report

4

Biotechnology Portfolio

Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

For the periods ended February 28, 2021

Biotechnology Portfolio

Past 1 year

47.35%

Past 5 years

19.30%

Past 10 years

20.98%

$10,000 Over 10 Years Let's say hypothetically that $10,000 was invested in Biotechnology Portfolio on February 28, 2011. The chart shows how the value of your investment would have changed, and also shows how the S&P 500? Index performed over the same period.

Period Ending Values $67,175Biotechnology Portfolio $35,259S&P 500? Index

5

Annual Report

Biotechnology Portfolio

Management's Discussion of Fund Performance

Market Recap: The S&P 500? index gained 31.29% for the 12 months ending February 28, 2021, a volatile but productive period for U.S. risk assets. The early-2020 outbreak and spread of COVID-19 resulted in stocks suffering one of the quickest declines on record, through March 23, followed by a historic rebound that included the index closing 2020 at an all-time high and gaining modest ground in the first two months of the new year. The crisis and containment efforts caused broad contraction in economic activity, along with extreme uncertainty and dislocation in financial markets. A rapid and expansive U.S. monetary/fiscal-policy response partially offset the economic disruption and fueled the market surge, as did resilient corporate earnings. The rally slowed in September, when stocks began a two-month retreat amid Congress's inability to reach a deal on additional fiscal stimulus, as well as concerns about election uncertainty, indications the U.S. economic recovery could be slowing and a new wave of COVID-19 cases. A shift in momentum began in October and accelerated following the U.S. elections, with the approval of three breakthrough COVID-19 vaccines and prospects for additional government stimulus fueling the "reflation trade" through February 28. By sector for the full 12 months, information technology (+50%) and consumer discretionary (+43%) led all gainers. Materials (+42%) and communication services (+37%) also stood out. In contrast, the defensive utilities (-3%) and real estate sectors (+5%) notably lagged.

Comments from Portfolio Manager Rajiv Kaul: For the fiscal year ending February 28, 2021, the fund gained 47.35%, outperforming the 31.95% advance of the MSCI US IMI Biotechnology 25/50 Index, as well as the broad-based S&P 500? index. Versus the industry index, security selection was the primary contributor, especially within the biotechnology group. Non-index exposure to pharmaceuticals and health care equipment also helped. The fund's largest individual relative contributor was our outsized stake in Immunomedics, which gained about 440%. This is a position that was sold the past 12 months. Also boosting value was our lighter-than-index stake in Gilead Sciences, which returned -8%. This was a position we established the past year. Another top relative contributor was an out-of-index stake in MyoKardia (+249%). This was a position that was sold the past 12 months. Conversely, out-of-index exposure to other diversified financial services modestly detracted from our relative result. The fund's modest position in cash also hurt relative performance amid a strong market the past 12 months. Our non-index stake in Galapagos Genomics was the fund's biggest individual relative detractor, due to its -61% result. Also hampering performance was an underweighting in Alexion Pharmaceuticals, which gained roughly 62%. Alexion Pharmaceuticals was not held at period end. Also hurting performance was an underweighting in AbbVie, which gained about 32%. The company was the fund's top holding.

The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.

Annual Report

6

Biotechnology Portfolio

Investment Summary (Unaudited)

Top Ten Stocks as of February 28, 2021

AbbVie, Inc. Vertex Pharmaceuticals, Inc. Biogen, Inc. Alnylam Pharmaceuticals, Inc. Acceleron Pharma, Inc. Amgen, Inc. Argenx SE ADR TG Therapeutics, Inc. ChemoCentryx, Inc. Moderna, Inc.

% of fund's net assets 12.0 4.5 3.7 2.4 1.8 1.8 1.8 1.7 1.6 1.5

32.8

Top Industries (% of fund's net assets)

As of February 28, 2021

Biotechnology

91.5%

Pharmaceuticals

6.3%

Life Sciences Tools & Services

0.9%

Diversified Financial Services

0.3%

Health Care Equipment & Supplies

0.2%

All Others*

0.8%

* Includes short-term investments and net other assets (liabilities).

7

Annual Report

Biotechnology Portfolio

Schedule of Investments February 28, 2021

Showing Percentage of Net Assets

Common Stocks ? 97.8%

Shares

Value

Biotechnology ? 90.2%

Biotechnology ? 90.2% 4D Molecular Therapeutics, Inc. AbbVie, Inc. AC Immune SA (a)(b) ACADIA Pharmaceuticals, Inc. (a)(b) Acceleron Pharma, Inc. (a) ADC Therapeutics SA (a) Adverum Biotechnologies, Inc. (a) Agios Pharmaceuticals, Inc. (a) Akouos, Inc. (a) Albireo Pharma, Inc. (a) Aldeyra Therapeutics, Inc. (a)(b) Alector, Inc. (a)(b) Allakos, Inc. (a)(b) Allena Pharmaceuticals, Inc. (a) Allena Pharmaceuticals, Inc. (a)(c) Allogene Therapeutics, Inc. (a)(b) Allovir, Inc. (a) Alnylam Pharmaceuticals, Inc. (a) ALX Oncology Holdings, Inc. (a)(b) Amgen, Inc. Amicus Therapeutics, Inc. (a) AnaptysBio, Inc. (a) Angion Biomedica Corp. (b) Annexon, Inc. (a) Apellis Pharmaceuticals, Inc. (a) Applied Genetic Technologies Corp. (a) Applied Therapeutics, Inc. (a) Aravive, Inc. (a)(b) Arcturus Therapeutics Holdings, Inc. (a)(b) Arcus Biosciences, Inc. (a)(b) Arcutis Biotherapeutics, Inc. (a) Ardelyx, Inc. (a) Arena Pharmaceuticals, Inc. (a) Argenx SE ADR (a) Arrowhead Pharmaceuticals, Inc. (a) Ascendis Pharma A/S sponsored ADR (a) Atara Biotherapeutics, Inc. (a) Athenex, Inc. (a)(b) Atreca, Inc. (a)(b) aTyr Pharma, Inc. (a)(b) Aurinia Pharmaceuticals, Inc. (a)(b) Autolus Therapeutics Ltd. ADR (a)(b) Avidity Biosciences, Inc. (b) AVROBIO, Inc. (a) Axcella Health, Inc. (a) BeiGene Ltd. ADR (a) Bicycle Therapeutics PLC ADR (a)(b) BioAtla, Inc. BioCryst Pharmaceuticals, Inc. (a)(b) Biogen, Inc. (a) Biohaven Pharmaceutical Holding Co. Ltd. (a) BioMarin Pharmaceutical, Inc. (a) BioNTech SE ADR (a)(b) BioXcel Therapeutics, Inc. (a)(b)

148,168 9,897,084

14,032 945,994 1,168,353 764,038 774,442 1,500,869 94,426 320,350 759,611 744,582 274,331 848,640 1,447,443 565,370 111,300 1,432,939 625,290 703,132 50,181 213,167 312,500 691,636 1,620,434 129,100 700,940 456,443 730,290 2,233,660 879,674 97,094 437,973 469,786 1,075,526 659,409 863,195 149,900 109,588 481,990 1,495,486 1,074,488 235,484 275,054 397,149

9,800 211,444 19,140 806,284 1,197,605 961,652

8,344 117,228 221,727

$6,220,093 1,066,311,827 106,503 46,325,326 159,082,944 20,315,770 9,936,091 71,201,225 1,923,458 11,167,401 9,312,831 13,536,501 33,243,431 1,425,715 2,431,704 19,623,993 4,069,128 212,218,266 50,204,534 158,148,449 616,223 6,117,893 5,418,750 20,133,524 78,056,306 655,828 15,224,417 3,108,377 38,464,374 78,758,852 30,058,461 626,256 35,191,131 155,348,834 85,676,401 102,188,613 14,484,412 1,813,790 1,901,352 2,096,657 20,936,804 6,919,703 5,682,229 3,025,594 2,263,749 3,136,000 5,343,190 1,016,334 8,691,742 326,802,452 81,721,187 646,076 12,781,369 11,886,784

Black Diamond Therapeutics, Inc. (a)(b) bluebird bio, Inc. (a) Blueprint Medicines Corp. (a)(b) Bolt Biotherapeutics, Inc. BridgeBio Pharma, Inc. (a)(b) C4 Therapeutics, Inc. (b) Cabaletta Bio, Inc. (a) Cardiff Oncology, Inc. (a)(b) CareDx, Inc. (a) Celldex Therapeutics, Inc. (a) Cellectis SA sponsored ADR (a)(b) Cerevel Therapeutics Holdings (d) ChemoCentryx, Inc. (a) Chinook Therapeutics, Inc. (a) Chinook Therapeutics, Inc. rights (a)(e) Clovis Oncology, Inc. (a)(b) Codiak Biosciences, Inc. Codiak Biosciences, Inc. Coherus BioSciences, Inc. (a) Constellation Pharmaceuticals, Inc. (a)(b) ContraFect Corp. (a) Cortexyme, Inc. (a)(b) Crinetics Pharmaceuticals, Inc. (a)(f) CRISPR Therapeutics AG (a)(b) Cullinan Oncology, Inc. Cyclerion Therapeutics, Inc. (a)(b) Cyclerion Therapeutics, Inc. (a)(d) Cytokinetics, Inc. (a)(b) CytomX Therapeutics, Inc. (a)(b) CytomX Therapeutics, Inc. (a)(c) Decibel Therapeutics, Inc. (b) Deciphera Pharmaceuticals, Inc. (a) Denali Therapeutics, Inc. (a)(b) Dicerna Pharmaceuticals, Inc. (a) Dynavax Technologies Corp. (a)(b) Dyne Therapeutics, Inc. (b) Editas Medicine, Inc. (a)(b) Eledon Pharmaceuticals, Inc. (a)(f) Emergent BioSolutions, Inc. (a) Epizyme, Inc. (a)(b) Equillium, Inc. (a)(b) Esperion Therapeutics, Inc. (a)(b) Essa Pharma, Inc. (a)(b) Evelo Biosciences, Inc. (a)(b) Exact Sciences Corp. (a) Exelixis, Inc. (a) Fate Therapeutics, Inc. (a) FibroGen, Inc. (a) Five Prime Therapeutics, Inc. (a)(b) Foghorn Therapeutics, Inc. Foghorn Therapeutics, Inc. Forma Therapeutics Holdings, Inc. Frequency Therapeutics, Inc. (a)(b) Fusion Pharmaceuticals, Inc. (a)(b) G1 Therapeutics, Inc. (a)(b) Galapagos Genomics NV sponsored ADR (a)(b)

See accompanying notes which are an integral part of the financial statements.

Annual Report

8

Shares

422,442 12,384 1,178,239 552,600 968,461 338,387 35,650 149,780 192,100 32,200 405,065 201,800 2,062,222 865,822 115,821 101,570 499,925 66,300 58,387 90,259 256,309 1,947 2,123,187 276,322 203,040 837,285 94,809 1,037,571 221,700 287,485 500,000 397,200 697,951 618,712 33,998 266,683 49,889 1,004,111 145,901 1,405,435 209,800 127,197 797,203 834,199 566,212 4,166,444 1,012,587 1,190,431 603,035 443,055 144,144 913,462 18,356 871,443 737,500 564,459

Value

$11,828,376 385,142

115,726,635 14,754,420 68,450,823 14,523,570

387,516 1,548,725 15,191,268

871,976 8,708,898 3,059,288 139,901,140 14,320,696

5,791 608,404 7,693,846 1,074,060 948,205 2,274,527 1,345,622 66,334 32,463,529 34,730,912 8,206,877 3,215,174 364,067 19,433,705 1,740,345 2,256,757 9,390,000 17,389,416 50,112,882 16,692,850 297,483 4,925,635 2,188,132 16,136,064 14,006,496 13,478,122 1,479,090 3,483,926 21,596,229 10,152,202 77,072,777 90,245,177 90,849,306 59,557,263 13,405,468 7,292,685 2,253,980 35,268,768 903,299 10,178,454 16,298,750 46,624,313

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download